Types of Unemployment

There is perhaps no greater example of structural unemployment than the closure of a significant amount of mines in the 1980’s by Margaret Thatcher’s Conservative government. Thatcher believed that due to the increased availability of foreign imports of oil and gas, the British coal sector had become too costly and not worthwhile, and should be shut down.

Closure of coal mines was heavily contested and led to widespread mining strikes nationwide. Structural unemployment goes some way to explaining why mine closures were met with such widespread anger. The closure of the sector resulted in significant unemployment as the skills possessed by miners were no longer required. This resulted in the need for miners to retrain to find employment in another sector, or face unemployment. Resultantly, this closure contributed heavily to rising unemployment rates in the UK in the 1980’s.

The threat posed by structural unemployment is particularly relevant of late, as we aim to transition from the burning of fossil fuels to more environmentally sustainable energy sources. However, if we were to simply shut down all fossil fuel companies immediately, there would be significant and damaging unemployment increases. During the transition towards net-zero, governments must prioritise retraining and upskilling workers in threatened sectors as to avoid substantial job losses.

If you would like to learn more about the Scottish Government’s roadmap to safely transition away from fossil fuels:

Scotland's Energy Strategy and Just Transition Plan: Ministerial statement

Statement by Cabinet Secretary for Net Zero, Energy and Transport Michael Matheson in the Scottish Parliament on Tuesday 10 January 2023.

www.gov.scot

Throughout the early 20th century, Glasgow’s shipbuilding industry, along the River Clyde, was booming and accounted for a significant portion of employment opportunities. However, the 1960/70’s gave rise to a substantial decline in demand due to increased international competition, rising costs and changes in global shipping trends. Decreasing demand contributed to rising unemployment in the industry, particularly in Glasgow. This gave rise to the increase in regional unemployment in Glasgow. The rise in unemployment had damaging knock on effects in the city of Glasgow, due to the skills possessed by the shipbuilders being required less. Resultantly, there was the increased need for retraining, government support, and increasing the diversity of industries in Glasgow. If you want to learn more about Glasgow’s history of shipbuilding follow the link below:

Govan: A shipbuilding history

Scotland was once the shipbuilder to the world and the heart of its industry was sited on the south bank of the River Clyde in the Glasgow district of Govan.

www.bbc.co.uk